ABSTRACTS
The research work is based on the effective of government
interference in management of financial institution. In this study it has been
revealed that this interference on financial institution by government as a
whole is a noble in the right direct. This Niger financial system is very
vibrant and highly competitive they have four basic product lines in the
banking industry such as deposit base product, lending base product, fee base
product, and technology base product. The government interference in the
management of financial institution is the project a case study of Union Bank
of Nigeria Plc. Is an important aspect of financial institution, its domain is
to ensure the regulation of money by the financial institution. So to identify
those problems encountered you must ensure that good services are appropriately
at the right time and place. The objective of this study has been to determine
how much government interference and the management of financial institution
has gone in improving the banking system and habits of union bank Nigeria PLC,
also the researcher examine the role of government in regulating banking
activities. Though. This has not been reduce and completely eradicated in other
like union bank, capable and better. Financial institution cannot stay out of
danger and crises without some measure of adaptation of the regulation and
policies will help them to be more efficient and effective in their operations.
It also promotes banking habits and efficiency in the delivery of banking
service and thereby enhances confidence in the system. Finally, therefore it
can be asserted that there are laudable changes seen in our bank today of which
could not be possible if government did not come into their management.
TABLE OF CONTENTS
Title page
Certification page:…………………………………………i
Dedication :……………………………………………….ii
Acknowledgement:……………………………………….iii
Abstract:………………………………………………….iv
Table of contents:………………………………………..v-vi
CHAPTER ONE
1.0 Introduction:………………………………………….1-3
1.1 background of the study:……………………………..3-5
1.2 statement of the problem:…………………………….5-6
1.3 objective of the study:………………………………..6-7
1.4 research questions:……………………………………7
1.5 research hypothesis:………………………………….7
1.6 significance of the study:…………………………….7-8
1.7 scope of the study:……………………………………9
1.8 limitation of the study:………………………………9-10
1.9 definition of terms:………………………………….10-11
CHAPTER TWO
2.1 management:………………………………………..12-13
2.2 theoretical frame work literature review:……………13-15
2.2.i central bank of Nigeria recent policy on financial
institution:….15-26
2.2.ii Nigeria financial review in the financial
institutions: ….27-29
2.2.iii union bank operational rules regulation and
result:….29-33
2.2.iv government policy and decree on financial
institution: 33-35
2.2.v government roles in financial institution:…………..35-36
References:……………………37
CHAPTER THREE
3.0 research methodology:……………………………..38
3.1 research design:……………………………………38
3.2 population of the study:……………………………38-39
3.3 sample size determination:………………………..39-40
3.4 sampling procedure/techniques:…………………..40-41
3.6 method of data analysis:…………………………..41
CHAPTER FOUR
4.1 analysis of data presentation of result:……………42-43
4.2 question 2:…………………………………………43-44
4.3 summary of result:………………………………..45
CHAPTER FIVE
5.1 summary of the study findings:…………………..46-48
5.2 conclusion:……………………………………….48-49
5.3 recommendation;…………………………………49-50
5.4 suggestion for further research:………………….50
Appendix 1:……………………………………………51
Appendix 11:………………………………………….52-53
Questionnaire:…………………………………………54
CHAPTER ONE
1.0 INTRODUCTION
Management has been defined as the process of combining and
utilizing organization resource of managerial to accomplish organization
objectives. It is also a process entailing responsibility for effective
planning and regulation of operation in an enterprise in fulfillment of a given
purpose or task.
What then do we actually means by interference? Interference
according to Webster’s dictionary is to take an active but unwelcome part in
some else activity.
In this study it has been revealed that this interference on
financial institution by government as a whole is a noble in the right direct.
This Niger financial system is very vibrant and highly competitive they have
four basic product lines in the banking industry such as deposit base product,
lending base product, fee base product, and technology base product. This was
instituted by the observation during the research that financial institution
benefited immensely by the government on the financial institution.
It is well known fact that number of service of financial
institutions offers have increased by taking a fundamental nature of their
business and it remains unchanged. This has led to conclusion that management
in financial institution is surrounded with risk. Management which involves
mismatches of assets and liabilities and it is cost borrowing and lending on
the other side. To nurture the economy is to loan the part of development that
has been the role of financial institution, mostly banks which has been
constrained by number of facts in to the past price.
Now the industrial sector has been characterize by massive
government involvement because of weak technolocal base, lack of linkages in
infrastructure and policy investment highly production cost and goods that were
uncompetitive internationally. Over the entire micro economic environment was
highly unstable, witnessing capital fight, high interest or inflation rates
negative real growth rates and fiscal excesses. With an external debt burden of
about 27.46 at the end of 1997, the repayment burden put constraint on growth.
Since 1995, however the federal government has been able to store some measure
of fiscal discipline through low budget deficits which achieved stable interest
and exchange rates regimes while pushing down inflation to a simple digit of
8.5 percent in 1998.
Aggressive reform and sanitation of the financial
institution source were pursued. On the other hand little or no attention was
paid to the vital area of privatization of government utilities liberalization
of the economic and improvement of infrastructure. The above review of the
economy has been undertaken and other financial institutions were supposed to
operate and provide financial to the industrial sector. Therefore, form the
above review the researcher wants to use this study to explore those factors
emanated from government interference in the management of financial
institutions that inhibited them from effective discharging, their
responsibility to the economy generally using the rules and regulation of Union
bank PLC to determine the extent it has contributed both positively and
negative part of such interference in the institution.
1.1 BACKGROUND OF
THE STUDY
The Nigeria institution is very vibrant and highly
competitive. It consist of 105 viable commercial and merchant banks which are
privately owned with a total of 2, 400 branches and development bank such as
NBC, NIDB, PBN AND FMSN owned by the government. There are about 200 registered
non bank finance houses of various sizes, part of the structural adjustment
programme (SAP) introduced in 1986. This was the expansion and diffusion of the
banking sector which has grown to 67 commercial and 55 merchant banks then 45
primary mortagage institution 228 branched of the people bank, 618 finance
companies, 48 fully licensed by the CBN, 401 community banks and specialized
bank by this null 1990’s there was endemic distress in financial system which
led to collapse of many of the institutions in the industry.
Many commercial and merchant bank were liquidated with 26
banks (13 each for commercial and merchant) liquidated as recently as January
16, 1989. In this case Union bank of Nigeria PLC Enugu revealed that government
interference in management of positive type. Even though that there are some
risk in embodying such rules and regulations line is their banking system such
as deposit based on product lending base, product fee base, products and
technology base.
Therefore the interference has help to accept the risk job
of greater mobilization of saving from the surplus units and channel them to
the deficit productive units of the economy and to ensure that no unable
project is frustrated due to lack of funds and greater facilitation of
synergies and sartorial linkages within the economy. There are still problem
resulting in such interference of which union bank are complaining of.
The effect of government interference in the management of
union bank plc also covers limits of permissible business risk concentration
capital and liquidity adequacy and statutory returns. The monetary aspect of
regulatory includes control of over loading general structure of leading rates
reserve requirement and foreign exchange. There are also regulation covering
advertising staff loan. Loan directors and inside dealing supervision is
employed to ensure effective management and control. The criticism led to
gradual deregulation in 1984 and was subsequently accelerated with the adoption
of (SAP) programme which gives room for the operation of free market forces
given financial instructions and more direction to their operation and
stimulation competitions in the financial system as a whole.
Consequently in 1988 the Nigeria deposit insurance
corporation was established with regulatory power to protect depositors against
bank failure and thereby strength the financial and impacted greatly on
financial institution environment.
1.2 STATEMENT OF
THE PROBLEM
Despite the interference of government in the management of
financial institution existence in Nigeria especially in the area of control
regulation and operation. Regulation does not guarantee that they will reverse
bank failure and serious banking crises. No matter how effective and thorough
the regulationary mechanisms are the problem may still occur as history has
shown it. Even with high policy and regulation which usually accompany a
serious bank crises or bank failure, it is to prevent impact of such failure
from threatening the systematic last resort function on central bank.
Establishing of more financial institution by both
government and individual were implemented to solve the problem of poor service
to customers and also dominance of foreign based bank by Nigeria indigenous bank
to help in encouraging improved banking system in Nigeria, but still there is
high production costs and goods that were uncompetitive, internally high
interest rates and right among bank directors and unprecedented industrial
unrest within the sector it exist due to shallow knowledge of management policy
and regulation in this sectors of economy which help in paralyzing the whole
system.
Also the problem exists due to hard core of such regulation
and deregulation of policy to the financial institution.
1.3 OBJECTIVE OF
THE STUDY
The main purpose of this study are:
To find out how union bank of Nigeria PLC is employing the
government policy to ensure sound banking system towards acceleration of
economic development in Nigeria
To determine their growth and survival in the faces of
various banking ordinance that was consolidated in central bank number 24
decrees of 1991 and the present day decrees.
To ascertain the effect of government interference in the
management of financial institution and type of environment it has created for
the proper existence of financial instruction whether it is on the right
director.
1.4 RESEARCH
QUESTIONS
Have the regulatory roles made union bank big, strong, and reliable?
Have government interference created a greater mobilization
and measures in financial institution?
Have the regulatory rule experienced better than
deregulatory role today?
RESEARCH HYPOTHESIS
In order to give focus to the study the following hypothesis
were formulated.
Ho: the quality of sources rendered by the union bank lead
to increased on people patronage.
Hi: the quality of service render by government interference
to management.
Ho: the cost charges on services by bank to citizen.
SIGNIFICANCE OF THE STUDY
The findings of this study would be useful to the union bank
of Nigeria PLC and the management of financial institution in general as a
guide to the banking system and formation of policies and decrees relative to
the effectiveness the institution. The study would provide a data base for
future researchers on the effect of government interference on financial
institution.
The study also serve as an additional material to the work
will as a long way in educating the readers on the significance of examining
the achievement of government and how it helps to improve economy sector mostly
on the part of monopoly especially in financial institution.
The study will provide in data base for future researcher on
the effect of government interference on financial institution.
The study also serve as an additional material to the work
and it will go a long way in educating the renders on the significance of
examining the achievement of government and how it helps to improve economy
sector mostly on the part of monopoly especially in financial institution.
The study will provide in data base for future researcher in
government interference in the management of financial institution and add to
the material outstanding in the library.
This study would be of important to any reader and assist
government and financial institution in reviving their various policies.
1.7 SCOPE OF THE
STUDY
This study is interned to cover:
The new policies and decrees introduced in financial
institution since the inception of structural adjustment programme in 1996.
The impact of these policies on the operation of union bank
of Nigeria PLC
The challenges posed by these policies and decrees and the
central bank effort to control the problem that arises by the implementation of
the policies and regulation.
This study will also cover the problems of union bank of
Nigeria PLC which they encountered due to some government control in the
management of their affairs and also the position aspect of the policies to the
management of union bank Nigeria PLC.
1.8 LIMITATION OF
THE STUDY
Studies of this nature are prone to limitation. My
experience during data collection are the most of the respondent interrogate
when regulate to addressing the question pose to them. They contended that this
would be tantamount to exposing the company’s policies to the public and that
their competition will capitalize on such policies of divulged.
SECRECY:
In spite of the fact that the researcher explained the
management of union bank that her study was purely academic test and the
management was reluctant to information.
TIME:
Enough time required for collection of data and other
relevant facts. The researcher a final year student has to case the already
limited time partly to read because of the work for her examination this time
has affected the researcher.
COST:
A thorough research work imposed a huge financial burden
that cannot be borne easily by a student for this reason the researcher had to
be restricted to a small financial institution. (union bank Nigeria PLC Enugu)
1.9 DEFINITION OF
TERMS:
FINANCIAL INSTITUTION:
This is the organization that responds to the financial
system in the country, they provide both short term and long term fund.
EFFECTIVE OPERATIONS
Being active progressive and consistent to financial
institution operation on service.
REGULATION:
Regulation is an act of being regulated or control role of
governing a group of people.
POLICY:
A selected planned line of product in light at which
individual decision is made and co-ordinate achieved. This can be chosen by
government or business.
IMMENSELY:
Valued too much.
MANAGEMENT:
Managing or being managed by the body of those in position
of administrative authority.
INTERFERENCE:
Interference is to take an active but unwelcome part in some
of active.
REFERENCES
Akuazaoku B.A (1987) problem of management of financial
Institution, the Nigeria account.
Femi Adekanye (1986) the element of banking Nigeria business
Times.